Nifty holds 24,000 as global chip selloff tests risk appetite
Indian equities opened on a cautious note on Tuesday, 28 July 2026, with the Sensex briefly adding over 100 points and the Nifty 50 reclaiming the 24,000 mark after Monday’s near 1 percent rebound. Gains in TCS and select largecaps offset pressure from global technology weakness, as investors tracked a sharp selloff in South Korean chipmakers and awaited key central bank decisions.
Market overview
| Index | 28 Jul 2026 Open/early trade | Move & % Change | Comments |
|---|---|---|---|
| Sensex | approx. 76,900 | approx. +100 pts (approx. +0.1%) | Opened choppy after prior 776 point rally. |
| Nifty 50 | above 24,000 | approx. +40 pts (approx. +0.2%) | Reclaimed 24,000 after closing at 23,995.95 on Monday. |
| GIFT Nifty | 23,987.50 | -54.5 pts (-0.23%) vs prior close | Indicated weak start before cash market open. |
- Sensex had closed Monday at 76,835.78, up 776 points or 1.02%.
- Nifty 50 ended Monday at 23,995.95, up 229 points or 0.96%.
- Early trade on Tuesday stayed volatile around the 24,000 handle.
- Traders watched crude, global equities and domestic earnings for direction.
Key movers
| Stock | Sector | Notable factor |
|---|---|---|
| TCS | IT services | Rose about 3% in early trade, aiding Nifty IT contribution. |
| BEL | Defence electronics | Down about 2% after reporting ₹1,054.53 crore Q1 FY27 profit, up nearly 9% YoY. |
| Adani Energy Solutions | Power, transmission | Opened in focus after launching ₹3,500 crore QIP with upsize option. |
| HDFC Bank | Private bank | Tracked completion of internal review of MSRDC deposits, no mala fide intent found. |
| Coal India | Mining | In focus after ₹8,852 crore Q1 FY27 consolidated profit, marginally higher YoY. |
| Tata Power | Power | Watched after 11% YoY profit rise on strong renewables and transmission. |
| Indus Towers | Telecom infra | Under scrutiny after Q1 net profit fell 2.6% sequentially to ₹1,745.8 crore. |
| BEL (Q1) | Defence PSU | Q1 numbers remained in focus despite stock weakness in early trade. |
- Larsen & Toubro, Hindustan Unilever, Varun Beverages, Tata Capital and Suzlon Energy were in focus ahead of Q1 results.
- Northern Arc Capital and Gravita India drew interest after double digit YoY profit growth in Q1.
- Brokerages stayed under pressure as June quarter earnings reflected slower derivatives volumes.
Sectoral action
| Sector/Index | Direction (approx.) | Key Drivers |
|---|---|---|
| IT | up | Support from TCS gain, despite global tech volatility. |
| PSU banks | mixed to up | FIIs reportedly increased exposure to public sector banks. |
| Private banks | mixed | FIIs trimmed stakes, weighing on select names. |
| Capital goods | in focus | L&T tracked large order win above ₹15,000 crore. |
| Power and utilities | in focus | Tata Power, Adani Energy Solutions traded on earnings and fundraise cues. |
- Mutual fund NFO flows fell to a five year low at ₹1,759 crore in Q1 FY27.
- Systematic investment plans stayed steady, supporting domestic flows into equities.
Technical outlook
| Statistic | Value/Change | Context |
|---|---|---|
| Nifty 50 close (27 Jul) | 23,995.95 | Snapped five session losing streak with 0.96% gain. |
| Sensex close (27 Jul) | 76,835.78 | Rebounded 1.02%, setting up cautious positive bias. |
| 200 DMA crossovers | 14 Nifty500 stocks | Multiple names moved above 200 DMA on 27 July. |
- According to technical scan data, 14 Nifty500 stocks closed above their 200 day moving averages on 27 July.
- Names included CRISIL, Garden Reach Shipbuilders & Engineers, 360 One Wam, Container Corporation of India and LIC Housing Finance.
- Other crossovers: Tube Investments of India, Colgate-Palmolive (India), Chalet Hotels, Coforge, DLF, Life Insurance Corporation of India, Indegene, Berger Paints India and State Bank of India.
- The 200 day moving average is widely tracked as a trend indicator by positional traders.
Global cues and chip selloff
| Market/Asset | Movement | Notes |
|---|---|---|
| KOSPI (South Korea) | -8.1% to 6,250.5 | Triggered sidecar curbs as chip heavyweights slumped. |
| SK Hynix | intraday -13%, ADRs at record low | Extended slide to about 45% from June peak. |
| Samsung Electronics | intraday -9.5% | Contributed heavily to KOSPI decline. |
| MSCI Asia Pacific | -2.92% | Tech stocks led regional losses. |
| Nikkei 225 | -3.86% | Tracked global semiconductor weakness. |
| Topix | -2.77% | Broad based Japan equity decline. |
| Brent crude | below $90, then below $88 | Fell on prospects of US Iran talks and easing war risk. |
| Spot gold | -0.7% to $4,044.81/oz | Weighed by stronger dollar ahead of Fed meeting. |
| USD/INR | Rupee at 95.76 | Rupee opened 0.16% stronger versus previous 95.91. |
- South Korean chip stocks fell as investors reassessed AI driven demand and rising Chinese competition.
- A Chinese state backed firm reportedly began mass production of deep ultraviolet lithography equipment.
- Memory maker CXMT Corp surged 466% on Shanghai debut, becoming China’s most valuable company by market value.
- “The market’s concern lies less in CXMT’s current earnings and more in its potential for accelerated capacity expansion to rival Korean companies,” said Kim Seok hwan, market analyst at Mirae Asset Securities.
- US semiconductor stocks also stayed under pressure, with the Philadelphia Semiconductor Index extending losses.
Macro and policy watch
| Statistic | Value/Change | Context |
|---|---|---|
| Fed July meeting hike odds | 36.3% for 25 bps | Up from 16% a week earlier, per CME FedWatch. |
| September Fed hike odds | 81% probability | Markets price higher chance of later move. |
| NFO collections Q1 FY27 | ₹1,759 crore | Down 73% YoY, six consecutive quarterly declines. |
- Investors awaited policy decisions from the US Federal Reserve, Bank of Japan and Bank of England.
- US equity futures traded slightly lower ahead of megacap earnings and the Fed outcome.
- Crude’s slide below $90 per barrel eased some concerns for oil importing economies like India.
- The US pause in strikes on Iran supported hopes of a diplomatic path, but markets awaited concrete progress.
Frequently Asked Questions
Why did Indian markets open cautiously despite Monday’s rebound?
Indian indices opened choppy as traders balanced Monday’s sharp recovery with weak signals from GIFT Nifty, a global selloff in semiconductor stocks and upcoming central bank decisions, particularly the US Federal Reserve meeting.
How is the global chip selloff affecting Indian equities?
A steep fall in South Korean chipmakers and broader Asian technology weakness has increased risk aversion globally, tempering sentiment towards Indian IT and tech linked stocks even as domestic heavyweights like TCS gained in early trade.
What does a stock crossing above its 200 day moving average indicate?
Traders often view a close above the 200 day moving average as a sign that a stock has shifted into an overall uptrend, so multiple Nifty500 names crossing this level points to improving medium term technical setups in those counters.
Disclaimer
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